Judge freezes separatist lawyer Jeff Rath's assets pending First Nation dispute

An Alberta judge has extended and expanded an order freezing the assets of lawyer Jeff Rath, a leading figure in Alberta's separatist movement, pending resolution of a legal dispute with Tallcree First Nation.

On Wednesday, Justice John Gill extended the Mareva injunction—a rarely used court order that temporarily freezes assets to prevent their dissipation before judgment—and appointed an investigative receiver to trace money removed from the trust.

Rath and his law firm must provide sworn evidence identifying their assets and their locations by July 27. They must also file sworn financial statements by August 4 accounting for all fees, charges, and amounts paid from Tallcree First Nation's trust account. Rath is ordered to undergo examination under oath about his assets on or before August 11.

Tallcree First Nation alleges Rath's firm misappropriated millions in trust funds it has overseen since 2017. The First Nation had made Rath's law firm the sole trustee of a $57.6-million settlement from the federal government following an agricultural benefits claim. Rath's firm charged an $11.5-million (20 per cent) fee for its services. In 2018, the court ruled those fees were excessive, a decision upheld by the Court of Appeal of Alberta. Rath has been ordered to return $8.5 million to the trust.

Rath calls the allegations false. A second First Nation, Sturgeon Lake Cree Nation, has also raised concerns about withdrawals from its trust managed by Rath's firm.